Retirement Plan Help

[mrindia]

Maa Employer 401K lanti benefits emi ivvadu. So nenu individual ga retirement plan start chesdamu anukukntunnanu.

IRA accounts chadivanu kani asalu ardam kavadam ledhu...koncham clear ga choptara ROTH IRA or Traditional IRA gurinchi...edi start chesthey baguntadhi...

 

[Guest]

Roth IRA - you pay taxes upfront, the advantage is you can withdraw your savings at any time with no penalty, but for the earning you pay 10% penalty

Traditional - you will have to wait until 59 1/2 years to withdraw money and pay taxes on the withdrawal. Suppose at that time if your tax bracket is low then it is advantage other wise you will pay more taxes and fees. In both of these max contribution is about 6k 

 

if you are around 30 and the income is around 100k, go for Roth..its like a cash flow in hand

[upendra_super]

Roth IRA - you pay taxes upfront, the advantage is you can withdraw your savings at any time with no penalty, but for the earning you pay 10% penalty

Traditional - you will have to wait until 59 1/2 years to withdraw money and pay taxes on the withdrawal. Suppose at that time if your tax bracket is low then it is advantage other wise you will pay more taxes and fees. In both of these max contribution is about 6k 

 

if you are around 30 and the income is around 100k, go for Roth..its like a cash flow in hand

+1

[Uchiha]

Good post

 

LTT

 

 

Aslu 401K thesukokapovadam is better antaru nijamena..if dont have plans to stay in the US for long time..

 

please suggest

[upendra_super]

Good post

 

LTT

 

 

Aslu 401K thesukokapovadam is better antaru nijamena..if dont have plans to stay in the US for long time..

 

please suggest

this is how it works if u keep 1$ to your retirement plan then employer might put 1$ until certain limit. if u want to withdraw u r money in short term then u pay 10% penalty and tax and then u get the balance.

 

ex: if 100 is u r income after tax u might get 70 assume.

 

if u go with 401k then if u keep 30$ u r employer also keeps 30$(assume) so u r amount is 60$. to get this 60$ before u r retirement u pay 10% fine and  30% tax so u might get only 36$.

 

so u r income is 49+36 = 85 instead of 70 in first case.

 

so depends on how much u r employer match

[MeetFriendz]

but usualkly desi employers cheyaru anukutnta kadha yee contribution?

 

Also contracting lo vunavalu independent ga chesthe benifit yemiti if employer is not contributing? Any tax benifits?

[Uchiha]

this is how it works if u keep 1$ to your retirement plan then employer might put 1$ until certain limit. if u want to withdraw u r money in short term then u pay 10% penalty and tax and then u get the balance.

 

ex: if 100 is u r income after tax u might get 70 assume.

 

if u go with 401k then if u keep 30$ u r employer also keeps 30$(assume) so u r amount is 60$. to get this 60$ before u r retirement u pay 10% fine and  30% tax so u might get only 36$.

 

so u r income is 49+36 = 85 instead of 70 in first case.

 

so depends on how much u r employer match

super

 

thanks bhayya...your posts r always very informative..

[pjung88]

Roth IRA - you pay taxes upfront, the advantage is you can withdraw your savings at any time with no penalty, but for the earning you pay 10% penalty
Traditional - you will have to wait until 59 1/2 years to withdraw money and pay taxes on the withdrawal. Suppose at that time if your tax bracket is low then it is advantage other wise you will pay more taxes and fees. In both of these max contribution is about 6k

if you are around 30 and the income is around 100k, go for Roth..its like a cash flow in hand

Good info bro...
Also, roth ira has income limits based on your tax filing status..google roth ira income limits...

[pjung88]

General, ga tax interest rates increase over a period of time, so the by the time you get to 60,you would pay more tax then rather now,even if you fall under lower tax slab...ee vishyam naaku 401k sign up avthun naapuduu cheppadu agent..

Roth lo you already taxes for today's rate...

[MeetFriendz]

General, ga tax interest rates increase over a period of time, so the by the time you get to 60,you would pay more tax then rather now,even if you fall under lower tax slab...ee vishyam naaku 401k sign up avthun naapuduu cheppadu agent..

Roth lo you already taxes for today's rate...

 

 

ok so it will be plus for us aa ?

[pjung88]

ok so it will be plus for us aa ?

Practical ga chusthe naaku allege annipinchundhi...unless I am missing some point..

usual ga, 401k ki employer entha match chestha atleast antha ayyina contribute chestharu becos you are loosing free money

Roth has income limits..so.not everybody can contribute

[MeetFriendz]

Practical ga chusthe naaku allege annipinchundhi...unless I am missing some point..

usual ga, 401k ki employer entha match chestha atleast antha ayyina contribute chestharu becos you are loosing free money

Roth has income limits..so.not everybody can contribute

 

 

ok good. Also any idea on desi employer contributing to it ? general ga adugutunaa

[pjung88]

ok good. Also any idea on desi employer contributing to it ? general ga adugutunaa

Never worked for desi company..no idea..

[Aryaa]

[D.V.S.KARNA]

this is how it works if u keep 1$ to your retirement plan then employer might put 1$ until certain limit. if u want to withdraw u r money in short term then u pay 10% penalty and tax and then u get the balance.

 

ex: if 100 is u r income after tax u might get 70 assume.

 

if u go with 401k then if u keep 30$ u r employer also keeps 30$(assume) so u r amount is 60$. to get this 60$ before u r retirement u pay 10% fine and  30% tax so u might get only 36$.

 

so u r income is 49+36 = 85 instead of 70 in first case.

 

so depends on how much u r employer match

again clarify this example in detail plz